Additional resources

Investing smart

The simple rules that help you increase your
capital with minimum risks

Every
sensible person with some cash to spare would like to at least preserve it, and
at best increase it. Unfortunately, the capital obviously cannot grow on its
own – it has to be invested somewhere. Today we will tell you the secrets of
successful investing.

Successful
investment is based on a number of simple rules that help you safeguard your
investment as much as you can and provide some table passive income.

Rule No.1. Limit risks in advance

The more
you invest – the more profit you might get. However, there is no 100% guarantee
that you will make some money off it, or even preserve your investment: even
the most reliable of banks are not insured against force majeure.

Investment
is not only likely profit; it is also potential loss. So to begin with, you
only should invest the part of your own capital that won’t affect your ordinary
way of living if you lose it. To do this, specialists recommend you split your
earnings into three parts:

savings refers to funds you’ve set aside to
buy something important in the near future, like house renovation, car
purchase, or vacation;

working capital is the money you can use to
generate passive revenue, without any pain or damage to your position and your
family.

You should
not, under any circumstances, use the basic part of your earnings for
investment purposes, never! It is better to generate your own “fund” by putting
aside 10-20% of your earnings than end up with no subsistence money after one
wrong decision!

Attention! Never ever invest money you borrowed: be it a loan or a money a friend
or relative lent you. When you only risk your own capital, you won’t run up
debts in the worst case.

Rule No.2. Diversify your investment

No matter
how reliable an investment seems, do not put all your eggs in one basket.
Diversification is the best way to increase your profit and limit your loss: split
your working capital into several parts and invest in various segments of the
market or in different investment products.

This is the principle followed
by the greatest investors of today – this is why they make profit (or at least
do not lose their money) even in the deepest recessions. Bought some bad papers
in the stock market? No problem, revenue from derivative or Forex markets will
cover the loss and keep your balance positive!

Even if you
only have small working capital, that is no reason to avoid diversification:
there are many solutions in the market today, like structured financial
products, that are available for a wide range of investors. These instruments
inherently have diversified risks, so you can limit your losses in advance.

Rule No.3. Redistribute profit

The moment
your investment starts paying off is not only very exciting, but also very
important for a novice investor. Properly managing your earnings is an art on
its own, and there is no universal strategy here. The main piece of advice
sounds like this: do not spend the money you earned; increase your working
capital.

One way to
manage your capital is to remove earnings as they are received and invest them
into other assets. Do you want to spend some money on entertainment or on personal
needs? That’s what basic and savings parts are for, as we wrote above. In any
case, costs need to be planned so that they do not exceed your earnings.

Diversify your investment
portfolio, study new markets – the more diversified your assets are, the more
prospective revenue you can generate in the future.

More advice

Following
these rules will definitely bring you closer to financial independence and help
avoid fateful errors. However, you should keep in mind that many things in
investment business depend on your patience and composure. You must be
psychologically prepared, for example to periodic downturns in the stock market
or drops in prices of the assets you purchased. Don’t panic, or you will lose
even more.

That means
you need to understand very well where you are investing. Take the time to
study the markets, look through the respective information in the literature
and in the news. If you are not sure about your competence – consult a
specialist.

An excellent option is to
trust your money to a professional manager. However, you have to be extremely
careful about choosing investment companies and foundations. Do not trust
companies that have little experience, no reputation and no legal regulation
mechanisms, with your money.

PAMM accounts

Market Info

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange (‘Forex’), Contracts for Difference (‘CFDs’), Indices, Options, or other financial derivatives, on ‘margin’ carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any of these markets you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full ‘Risk Disclosure’ and ‘Risk Disclosures for Financial Instruments & Investment Services’

LEGAL: ‘fxfinpro.com’ is a domain owned and operated by ‘PFX Financial Professionals Limited’, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840, having its principal place of business at 82 Nikou and Despina Pattichi Avenue, Maritania Court, Office 101, Kato Polemedia, 3070 Limassol, Cyprus. ‘PFX Financial Professionals Limited’ is regulated as a Cyprus Investment Firm (‘CIF’) by the Cyprus Securities and Exchange Commission (‘CySEC’) under license number 193/13. ‘PFX Financial Professionals Limited’ operates in accordance with the Markets in Financial Instruments Directive (‘MiFID’) of the European UnionRESTRICTED REGIONS: PFX Financial Professionals Limited does not provide services to citizens of the USA, Canada, Japan, Belgium, North Korea, or Iran

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange (‘Forex’), Contracts for Difference (‘CFDs’), Indices, Options, or other financial derivatives, on ‘margin’ carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any of these markets you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full ‘Risk Disclosure’ and ‘Risk Disclosures for Financial Instruments & Investment Services’

LEGAL: ‘fxfinpro.com’ is a domain owned and operated by ‘PFX Financial Professionals Limited’, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840, having its principal place of business at 82 Nikou and Despina Pattichi Avenue, Maritania Court, Office 101, Kato Polemedia, 3070 Limassol, Cyprus. ‘PFX Financial Professionals Limited’ is regulated as a Cyprus Investment Firm (‘CIF’) by the Cyprus Securities and Exchange Commission (‘CySEC’) under license number 193/13. ‘PFX Financial Professionals Limited’ operates in accordance with the Markets in Financial Instruments Directive (‘MiFID’) of the European UnionRESTRICTED REGIONS: PFX Financial Professionals Limited does not provide services to citizens of the USA, Canada, Japan, Belgium, North Korea, or Iran

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.